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TMI Blog2019 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... icers of DGCEI visited various premises and collected documents. On the basis of the investigations conducted, a show-cause notice was issued covering the period 9/2002to 3/2007. The show-cause notice was confirmed by Commissioner of Central Excise, Bangalore-III Commissionerate vide Order No. 4/2008 dated 28.8.2008. Duty of Rs. 1,83,91,846/- was confirmed along with interest and equal penalty under Section 11AC of Central Excise Act, 194 was imposed on the company; a penalty of Rs. 10,00,000/- was imposed on Mohammed Yamin Khan, Director under Rule 26 of Central Excise Rules, 2002. Hence, these appeal. 2. Learned counsel for the appellants submits that they are engaged in fabrication of structures at the premises of residential/commercial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... free of cost and accommodation of labour force shall be looked after by the appellants. The appellants have shown to the Commissioner during the course of adjudication, the work orders and photographs relating to the work performed by them. It can be easily inferred from the photographs that structures of that size and nature cannot be manufactured in a small factory and transported to the various sites. If it were to be transported to far of places like New Delhi, Baddi, etc., it would be even uneconomical. Going by the nature of the work undertaken and the size of the structures, it cannot be alleged that the same were manufactured in the factory or in the job worker's factory and later transported to different sites. 2.2 They have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve the impugned order requires to be set aside. 3. Learned AR for the department submits that DGCEI have conducted a systematic investigations and have established that the appellants have manufactured excisable goods and cleared them without payment of duty; the Director of the appellant, Shri Mohammed Yamin Khan has accepted the allegations of the Department; some of the officers of the projects who gave contracts to the appellants have also accepted that the material was supplied by the appellants; the appellants did not keep any records of excisable goods manufactured in their factory and as such, they are liable to pay Central Excise duty on the entire activity undertaken by them. She reiterated the findings of OIO. 4. Heard both sid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to the items manufactured in the premises of the factory /job worker and later, brought to different sites for fabrication. We find that the Department has not arrived at the actual value of the items manufactured by the appellant in his or his job worker's premises. Merely, due to the fact that the appellants have not maintained / produced records for their manufacture, it is not free for the department to allege that the entire consideration received by them from their projects indicates the value of the excisable goods manufactured by them. It is abundantly clear from the work orders that the work has been of a composite nature and fabrication of large items has been done at the site. Therefore, it is not correct to allege that the en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw material, etc., has been put forward. 5.1 The learned AR submits that the Director of the appellants has accepted manufacture in their factory. We have gone through the statement of Mr. Mohammed Yamin Khan on 31.3.2006, wherein he stated that in some cases they purchase the material and in some cases they get material from said builders; they undertake the requisite fabrication of such as centering material, grills, tresses, purlins, columns, their parts, etc. in the premises of appellants or MS Engineering; after completion of the said process, the said goods are taken to respective sites and then assembled as per specified requirements. Shri Mohammed Yamin Khan also stated that majority of the work was based on orders given by M/s. B ..... X X X X Extracts X X X X X X X X Extracts X X X X
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